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Archive for 'HOW TO BUY A BUSINESS' Category

Asset Sale versus Stock Sale

By Hoke - Last updated: Monday, September 3, 2012

The Asset Sale is the favored means of acquiring a business. This is the form of sale in 95% of business sales. This is in lieu of acquiring the Corporation Stock. With an Asset Sale the buyer essentially acquires the Equipment, Furniture, Fixtures, Lease, Customer List, Inventory, Licenses, Permits and Trade Name. The employees are […]

Internet Acquisition Search

By Hoke - Last updated: Sunday, September 2, 2012

The most common, least effort and least costly is the internet search. See The best websites to find a California Business for Sale. The buyer can perform the search themselves and contact the sellers directly if they wish. Many Business Brokers will perform this service for the buyer. However there may be a disadvantage of […]

For Sale by Owner

By Hoke - Last updated: Sunday, September 2, 2012

The majority of businesses are not sold through business brokers. The owner puts out the word through their business network or it is sold to a family member, friend or employee. Some of these businesses owners are not aware of business brokers and the business for sale market. Some are so concerned about confidentiality they are […]

Financial Due Diligence Checklist

By Hoke - Last updated: Saturday, September 1, 2012

This typical list is complete and detailed. Many smaller businesses may not have available this depth of detail. Bank Statements for the for past three years Cash Receipts Journals for the for past three years General ledgers for the for past three years Cash disbursement journals/check registers for the for past three years Copies of […]

Real Estate Broker as Business Broker

By Hoke - Last updated: Saturday, September 1, 2012

Although anyone with a valid California Real Estate License may sell business opportunities they should have a good understanding of accounting, business values and the business sale process. Some buyers want their friend or relative who sells homes to represent them and make a commission. Understanding the benefits of a recent termite inspection does not […]

Dual Agent or Buyer’s Agent?

By Hoke - Last updated: Saturday, September 1, 2012

An experienced and ethical dual agent who represents both parties can be beneficial to the acquisition process because a more direct communication and ability to really understand the needs of buyer and seller. Yet a dual agent without both experience and ethical responsibility can be a real liability. An experienced and ethical buyer’s agent can […]

The disadvantage of letting the business brokers search for my acquisition

By Hoke - Last updated: Saturday, September 1, 2012

Unlike residential real estate, listing business brokers are not contractually obligated to cooperate (split commissions) with another business broker who represents a buyer. To make a higher commission percent, a high percentage of listing business brokers will not cooperate with other brokers. Your agent normally will not have access to these listings. If you would […]

Where to find businesses for sale

By Hoke - Last updated: Saturday, September 1, 2012

Today the internet is where businesses are sold. Unlike residential real estate agents, business brokers do not have an exclusive MLS type system. You need not be a broker to search businesses for sale. In fact brokers have a disadvantage over the principal buyer. See The disadvantage of letting a broker search for my acquisition […]

Beware the Inept Business Broker

By Hoke - Last updated: Friday, July 27, 2012

I recently sat in a disaster of a closing meeting as a paid consultant (not as Broker). The purpose of this meeting was for the buyer, seller and landlord to sign a Lease Assignment and close the deal. Unfortunately, the broker who was to provide the Lease Assignment never showed this complicated three page lawyer […]

Why do Business Brokers get 10% and Real Estate Brokers get 6%

By Hoke - Last updated: Sunday, August 15, 2010

Ten Percent is the longstanding traditional Business Brokers Commission. Why? It’s the Market Fee that almost everyone else charges.  Why do Real Estate Brokers get 6%? It’s the Market Fee that almost everyone else charges. Is 10% too high? Aside from the required Accounting and Financial background, here is our take on this issue. The […]